Retirement Savings and Benefits
Questions and comments about IRAs, 401k accounts, social security, and other forms of retirement savings and benefits.
One Rollover per Year meaning?
Posted by: kaneohe, November 8, 2017 05:44PM
What exactly do the statements below mean? I don't see
any references to 365 days, just 12 mos. or 1 yr.
Reason for confusion is that Medicare allows certain procedures (such as wellness exam) to be done once every 12 mos........which turns out to mean different things to different folks........but to Medicare it means if you have wellness exam in No one yr, the next yr you can have it anytime in Nov.

Wondering if there is consistency of word meanings in


you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period

The one-rollover-per-year rule of Internal Revenue Code Section 408(d)(3)(B) applies only to rollovers.

Re: One Rollover per Year meaning?
Posted by: Alan S., November 8, 2017 08:32PM

The one rollover limitation specified in the following code Sec 408(d)(3)(B) states that this period starts on the day the rollover is received. Therefore, calendar year does not enter into this in any way, as the 1 year period (same as 12 months) runs from specific date to 12 months after that specific date.

This paragraph does not apply to any amount described in subparagraph (A)(i) received by an individual from an individual retirement account or individual retirement annuity if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in that subparagraph from an individual retirement account or an individual retirement annuity which was not includible in his gross income because of the application of this paragraph.

There is very limited consistency in govt regulations. The Medicare Wellness exams do happen to be consistent with the IRA rollover period with respect to the calendar year being inapplicable. But instead of 12 months to the day, the next exam cannot occur until the 12th month from the month of the prior exam. Not sure that certain other covered services may not use a calendar year limit however. Most services are probably available as needed but any with a specific limit by time would have to be checked carefully to see how that time is measured, whether consecutively or per plan year.

Re: One Rollover per Year meaning?
Posted by: kaneohe, November 8, 2017 09:49PM
Thanks, Alan. To me,specifying 365 days would have been more meaningful as it suggests from a specific date while months has a somewhat fuzzier meaning (as w/ Medicare).

Re: One Rollover per Year meaning?
Posted by: Alan S., November 8, 2017 10:09PM
Could be. 365 days would eliminate leap year confusion.

Re: One Rollover per Year meaning?
Posted by: Alan S., November 8, 2017 11:45PM
This quote was in today's Schwab report with respect to he one rollover limitation:

>>>>>>There is one exception to this part of the rule. If an individual receives more than one check, from the same IRA, on the same day, then all distributions can be rolled over. This could happen if a custodian issues a separate check for separate investments in one IRA. For example, you ask for a distribution of $100,000 from the IRA. Two investments will have to be liquidated. The custodian issues one check for the liquidation of investment 1 and issues a second check for the liquidation of investment 2. If both checks are issued on the same day, both checks would be eligible for a 60-day rollover, as long as no other 60-day rollover has been done in the past 12 months.

Leaves a question of what happens if the checks are NOT issued on the same day, but received on the same day, or issued on the same day but received on different days. Further, the issue date will normally be on the check but the received date is not clear without a signed receipt requested.

Pub 590A seems to infer that the received date and the issue date are in lockstep, and that is not necessarily correct.

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